After suffering a massive 11 percent drop last week, Japan's Nikkei average has exhibited a dramatic turnaround during Monday trading, with the country's shares surging 7.2 percent to 16,022.58, according to FOX Business News. Asian shares extended their gains on Tuesday as a combination of stabilising Chinese markets, a rebound in oil prices and solid U.S. consumption data drove investors to look for bargains after last week's rout. London's FTSE 100 was up 2.25 percent while the pan-European Stoxx 600 was up 3.16 percent. (AP Photo/Koji Sasahara). A man walks by an electronic stock board of a securities firm in Tokyo, Monday, Feb. 15, 2016. Japanese bond yields fell, however, as the Bank of Japan started implementing negative interest rates on Tuesday, with the 10-year yield dropping 4.5 basis points to 0.040 per cent. The benchmark overnight interbank lending rate fell to zero percent but not to negative levels partly because some banks have not fixed their system to deal with negative rates. Hong Kong's Hang Seng jumped 598.56 points or 3.27 percent to end at 18,918.14. The Shanghai composite index dropped 0.6% to 2,746.20 on its first day of trading after a week-long holiday. Taiwan's benchmark was flat while markets in Southeast Asia gained. U.S. financial markets were closed for a national holiday but globally-traded USA stock futures rose 1.5 percent. The weakening of the yuan reference rate by the People's Bank of China during the morning session also prompted selling as China's slowing economy continues to remain one of the main concerns in the market, analysts said. The Japanese unit was also weighed by speculation that the Bank of Japan would unleash more stimulus after a poor fourth-quarter Japanese economic growth reading on Monday. Boosting the so-called yuan fixing would wipe out much of the benefits afforded by January's depreciation of the currency, while any bias toward weakness after the holiday could spur on global market turmoil. The yuan hovered near its strongest level so far this year a day after the central bank guided the currency, also known as the renminbi, sharply higher. Oil prices picked up on news of an uncommon private meeting of top authorities from the world's largest oil producers provoked theory of an inevitable arrangement to handle a profound supply excess. ANALYST'S TAKE: "Since the start of January everything went south and we really needed some positive news", said Jackson Wong, associate director at Huarong International Securities. Tokyo stocks soared Monday as a weaker yen and bargain-hunting drove a rebound from last week's hammering on global equity markets. In energy trading, benchmark USA crude oil futures rose 29 cents to $29.73 a barrel in electronic trading on the New York Mercantile Exchange. Tokyo's main share index, the Nikkei 225, jumped 4.4 percent to 15,615.84 in early trading Monday. Shares in France's CAC 40 rose 3.41 percent, while Germany's DAX was up 3.08 percent. In Tokyo, the dollar rose to 114.83 yen from 114.60 yen in London, while the euro was at $1.1153 compared with $1.1146.

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